The Employees’ Provident Fund Organisation (EPFO) has announced several important rule changes in 2025 to improve the experience of employees and pensioners. These changes focus on simplifying processes, enhancing financial security, and making fund transfers easier.
Simplified Joint Declaration Process
EPFO has made it easier for members to update their details. Employees with Aadhaar-verified Universal Account Numbers (UAN) issued after October 1, 2017, can now submit changes online. Those with older UANs must still submit physical forms, but the process has been simplified.
Changes to Pension Payment Order (PPO)
From January 1, 2025, pensioners will no longer need to transfer their PPO when changing bank branches. The same bank account linked to their UAN-KYC can be used for pension payments, reducing errors and processing delays.
Easier Profile Updates
EPFO has made profile updates more convenient. If a member’s UAN is Aadhaar-validated, they can now update details without submitting extra documents. This will save time and reduce the hassle for employees needing to correct their personal information.
Simplified PF Transfers
Transferring Provident Fund (PF) accounts has become easier. Employees switching jobs no longer need employer approval for PF transfers in certain cases. If their UANs are Aadhaar-linked and issued after October 1, 2017, the transfer process will be automatic, ensuring a faster and smoother transition.
Increased EPF Contribution Limits
EPFO has lifted the contribution cap for employees. Previously, contributions were based on a salary limit of ₹15,000 per month. Now, employees can contribute based on their actual salary, helping them save more for retirement and secure better pension benefits.
New ATM Withdrawal Facility
EPFO is set to introduce an ATM withdrawal option in the next financial year. Members will be able to withdraw their PF balance using an ATM card, providing greater convenience and faster access to funds. More details on this facility will be announced soon.
Higher Pension for Higher Earners
Pension calculations have been revised to benefit employees with higher salaries. The new rules consider the last 60 months’ salary, allowing for better pension payouts. Employees who defer their pension beyond 58 years will also receive increased benefits.
Conclusion
EPFO’s new rules aim to make fund management simpler and more efficient. With these changes, employees and pensioners can expect faster processing, easier updates, and better financial security for their retirement.